Kerosene could remain tax-free in the EU for 20 years According to a draft Reuters EU countries are considering this option.
Die Reason: Due to a lack of sufficient sustainable alternative fuels (SAF) on the market, taxing aviation fuels would only to more expensive flight tickets rather than promoting the switch from fossil fuels to SAF.
The European Commission had originally proposed a revision of energy tax rules for 2021 to make them more climate-friendly. This includes the gradual introduction of taxes on fuel for flights within the 27 EU countries.
After failing to agree on previous proposals for a minimum tax rate on kerosene from 2028, Member States are now considering exempting both aviation and marine fuels from this tax for a further 20 years.
Small aircraft may have to pay
Only aircraft with a maximum of 19 seats and boats for private use would be subject to minimum taxes in the EU. For other aircraft and ships, countries could impose national taxes at their own discretion, but they are not obliged to do so.
According to the draft compromise, EU countries would discuss again in 15 years whether they want to impose minimum tax rates on all types of aircraft and ships after the 20-year period has expired. Minimum tax rates already apply in the EU for other fuels such as petrol and electricity.